Historic preservation tax credit
If enacted, HB2760 is expected to stimulate economic activity associated with the renovation and reuse of historic properties. The designated annual aggregate amount for the tax credits is set at $15 million, which could be crucial in revitalizing local economies, especially in smaller towns and communities within Arizona. Additionally, the bill mandates a cost-benefit analysis by the Arizona Commerce Authority to assess the potential economic impact of projects before tax credits can be awarded, creating a structured approach to fiscal responsibility.
House Bill 2760 aims to promote the rehabilitation of certified historic structures in Arizona by introducing a historic preservation tax credit. This credit allows for an income tax credit equal to 20% of the qualified rehabilitation expenses incurred for the substantial rehabilitation of a certified historic structure. The bill mandates that certification of rehabilitation be conducted by the Arizona State Parks Board, ensuring that the renovations meet specific standards as outlined by the Secretary of the Interior. The bill also establishes a schedule for application submissions and reserves a percentage of tax credits specifically for projects in smaller municipalities.
Notable points of contention surrounding HB2760 may include concerns over the allocation of public funds through tax credits and the regulatory burden it places on small municipalities. Critics might argue that while the intention is to preserve historic sites, the implications of funding through tax incentives could divert resources from other community needs. The restricted certification process and the need for compliance with federal standards may also create apprehension among prospective applicants regarding the complexity of the certification and rehabilitation procedures.